Don’t Auto-Renew Your Mortgage: Why Now Is One of the Best Times for Canadians to Switch Lenders

If your mortgage is coming up for renewal, it’s easy to treat it like a formality. A letter arrives, a rate is offered, you sign, and you move on. But for many Canadian homeowners, that “set-it-and-forget-it” approach is quietly costing thousands of dollars.

Right now, renewal conditions are very different than they were five years ago. Lenders are competing more aggressively, discounts are stronger, and flexibility matters more than ever. Renewal isn’t just paperwork — it’s one of the most important financial checkpoints you’ll have as a homeowner.

Many Homeowners Are Still in Mortgages That No Longer Fit Their Life

A common issue I see is homeowners staying in mortgage structures that made sense years ago — but no longer match their reality today.

Over the last few years, many Canadians have experienced:

• Income changes
• Career shifts
• Growing families
• Higher living costs
• Economic uncertainty

Renewal is the natural checkpoint to ask: Does my mortgage still support where I’m headed over the next 3–5 years?

Switching lenders at renewal is often the easiest time to realign your mortgage with your actual goals.

Lenders Are More Competitive Than They’ve Been in Years

Mortgage renewal volumes are high, while home sales activity has been slower. That combination keeps lenders hungry for business. The result is stronger pricing and better offers for borrowers who are willing to explore their options.

Even a small difference in interest rate can add up over time. A reduction that looks minor on paper can translate into hundreds or thousands of dollars saved over a full term, especially on larger mortgage balances. And while rate matters, it’s only one part of the value equation.

Switching Lenders Is Easier Than Most People Think

One of the biggest myths around mortgage renewal is that switching lenders is complicated or risky. In reality, many switches are quite straightforward.

If you’re keeping the same mortgage balance, amortization, borrowers, and property, you can often move lenders without having to re-qualify under the federal stress test. That change alone has made switching far more accessible for homeowners who might not qualify under stricter rules from the past.

Cash Incentives Can Offset Switching Costs

To attract renewal business, many lenders are offering cash incentives to homeowners who switch. These incentives can help offset legal fees, appraisal costs, or discharge fees, reducing the out-of-pocket cost of moving your mortgage.

Cashback should never be the only reason to switch, but when paired with better pricing or improved flexibility, it can significantly improve the overall value of a new mortgage. Beware though: some banks like CIBC claw back the cashback if you break your mortgage early. 

Renewal Is the Best Time to Fix Restrictive Mortgage Terms

Many homeowners don’t realize how restrictive their mortgage is until they try to break early, sell, refinance, or make larger prepayments. Some mortgages come with harsh penalties, limited portability rules, or clauses that reduce flexibility when life changes.

Renewal gives you the chance to move into a mortgage with fairer penalties, better prepayment options, and terms that won’t work against you later. In many cases, these features can save more money long-term than focusing on rate alone.

Switching Isn’t Just About the Rate — It’s About Structure

A lower rate is great, but renewal is also your opportunity to restructure your mortgage so it works better for you.

This might mean improving cash flow, adjusting amortization, adding access to home equity, or choosing a more flexible structure that can handle future changes. A mortgage should support real life — job changes, family needs, and economic ups and downs — not just look good on renewal day. 

Flexibility and Equity Access Matter More Than Ever

With uncertainty still present in the economy, flexibility has become a priority for many homeowners. Not all lenders offer HELOCs, and not all HELOCs are structured to grow automatically as you pay down your mortgage.

Renewal is often the cleanest time to build flexibility into your mortgage so that access to equity is available when you need it, without having to refinance under pressure later.

Most Switching Costs Are Often Covered

For straightforward mortgage switches, many lenders will cover common costs such as appraisals, legal fees, and title insurance. In some cases, discharge or assignment fees can also be negotiated or offset.

Understanding whether your move qualifies as a simple switch or a refinance is important, and that’s where guidance can make the process smoother and more predictable.

Final Thought: Renewal Is a Strategy Moment

Automatically renewing with your current lender is usually the easiest option — but it’s rarely the most strategic one.

Renewal is one of the few times homeowners can meaningfully improve their interest costs, flexibility, and long-term financial position without changing their home or lifestyle. Taking the time to review your options can have a real impact on your net worth over the next term.

If your mortgage is renewing in the next 6–12 months, this is the time to review your options before you sign anything.
A short conversation can help you understand whether switching lenders or restructuring your mortgage could save you money or give you more flexibility moving forward.

👉 Book a complimentary mortgage review at www.chatwithashley.ca
📞 519-339-0883
📩 [email protected]

Even if you decide to stay with your current lender, you’ll renew with clarity and confidence — and that alone is worth it.